Understanding Electronic Payment Processing

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You do a lot of things like shopping, bill payments, bookings and online money transfer using your credit or debit card. The use of cards makes it easy to receive payments. All these transactions you do are done by going through many different processes. This involves a risk as the incidents of data breaches continues to increase. Major credit card companies in this world have taken steps to protect their customer’s personal information and also to protect the card payment gateway.

There is a PCI i.e. Payment Card Industry which ensures your card payment processing security. It has developed different data security standards which are a set of some requirements designed to build a strong payment security foundation. These standards create protocols and also many procedures which test the software running on electronic shopping carts and also provide a secure payment gateway. This industry also develops the PIN transaction security standards for the devices used in swiping credit card transactions or PIN entry devices, which enables the physical and logical security of that device. This industry also tests and maintains a list of software through which your transaction takes place. This industry is created by major card companies like MASTER, VISA, AMERICAN EXPRESS and many more.

 Also for a website it is not an easy job to allow its customers using an electronic payment gateway. A website must have to maintain the confidentiality and security of data for accepting and processing of payments should. Here is a list of steps that a website requires for doing its electronic transactions:

1. Firstly it needs to identify its Internet merchant account, from which it can expect to pay fees to their acquiring bank.
2. Then comes the service providers (like VeriSign) through which your transaction takes place and ensures a secure payment gateway.
3. The longest part of this process it to complete the Internet Merchant’ application. It may ask for business or personal financial information.
4. Then it has to verify the banking information. Once its account has been created, it verifies that its bank account had been set up to process online payments using payment service providers

All these processes look easy but consume a lot of time and money. Then also a website has to sign up to lots of certificates and finally it gets its permissions to allow electronic transactions.

There are lots of electronic payment providers, which guarantee the highest quality services and also provide all technical support. One of them is “Newtek” electronic card payment processing. Their sales representatives train you on how to efficiently operate your electronic payment systems and reduce fraud, as well as help you, understand your account statements, settle your deposits and answer questions about fees, rates, retrievals and chargebacks. They also accept your credit cards through your mobile phones. Their application is downloadable on all the iPhone, Android and Blackberry.

Thus, an electronic card payment gateway is not only paying money to a website it has many more things to do. So while any transaction the most important role is played by the payment processing service providers.

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